I need help with these problems. Principles of Corporate Finance 11 th edition Brealey, Myers, & Allen

Calculate the PVs of depreciation tax shields in the five-year and seven-year classes shown in Table 6.4. Assume the tax rate is 35% and the discount rate is 10%. Lastly, assume the asset in question costs $1. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Present Value Five year Seven year The following table tracks the main components of working capital over the life of a four-year project. Accounts receivable Inventory Accounts payable 2010 0 75,000 25,000 2011 150,000 130,000 50,000 2012 225,000 130,000 50,000 2013 190,000 95,000 35,000 2014 0 0 0 Calculate net working capital and the cash inflows and outflows due to investment in working capital. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter 0 wherever required.) 2010 2011 2012 2013 2014 Working capital Cash flows Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) C0 C1 C2 -100 +110 +121 -120 +110 +121 Machine A B C3 +133 The real opportunity cost of capital is 10%. (Use PV table.) a. Calculate the NPV of each machine. (Do not round intermediate calculations. Round your answers to the nearest thousand.) Machine A B NPV $ $ b. Calculate the equivalent annual cash flow from each machine. (Do not round intermediate calculations. Round "PV Factor" to 3 decimal places and final answers to the nearest thousand.) Machine Cash flow $ A $ B c. Which machine should you buy? Machine A Machine B A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the payoff less $100. Probability 0.10 0.50 0.40 Payoff $500 100 0 Net Profit $400 0 -100 a-1. What is the expected cash payoff? Expected cash payoff $ a-2. What is the expected rate of return? Expected rate of return % b-1. Calculate the variance of this rate of return. (Ignore the technical point referred to in footnote 16). (Round your answer to the nearest whole number.) Variance b-2. Calculate the standard deviation of this rate of return. (Ignore the technical point referred to in footnote 16). (Round your answer to the nearest whole percent.) Consider the following information: Stock Return if Market Return Is: Stock -10% +10% A 0 +20 B -20 +20 C -30 0 D +15 +15 E +10 -10 What is the beta of each of the stocks? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 1 decimal place.) Stock A B C D E Beta